VIG Alumni Newsletter #1
Inaugural Alumni Newsletter of the USC Value investing Group. This edition includes a recap on our 2023 Buy-Side Panel and information on upcoming VIG Merchandise.
Welcome to the inaugural alumni newsletter of USC’s Value Investing Group. On behalf of VIG, I am pleased to introduce this new communication tool that will serve as a vital link between our esteemed alumni and current members. This newsletter aims to keep you informed about the latest developments and accomplishments within VIG alongside any potential opportunities. VIG is constantly evolving, and it is crucial for us to stay connected with our alumni.
We encourage all our alumni to engage with opportunities presented through the newsletter and to actively participate in the community. By doing so, we hope that alumni can continue to contribute to the growth and success of VIG.
Daniel Li, VIG President (Fall ‘23 - Spring ‘24)
Fall 2023 Annual Buy Side Panel
On November 9th, VIG hosted its annual Buy-Side Panel, inviting USC and VIG alumni to speak about the markets and their investing careers. This year we had the privilege of hosting:
Niki Pezeshki: General Partner at Felicis Ventures & VIG Alumnus
Michael Kianmahd: Executive Vice President at Maxim Commercial Capital & VIG Alumnus
Lindsay Berz: Managing Director at Oaktree (US Fixed Income)
Rahim and Sakinah Thobani: Founders and Managing Principals of Tenex
Jack Hussey: Investor at Almitas Capital
With approximately 100 students in attendance, the event was a massive success. The current volatility in financial markets also gave way to many interesting issues to be discussed. Of the 2 hour panel, a few important takeaways arose (paraphrased):
Consumer Spending: Will the American Consumer Remain Resilient?
Bull: Don’t bet against the American consumer. Post-reopening, the American consumer has a sense of “revenge spending,” where people are now spending a lot more on experiences.
Bear: While a strong labor market is propping up consumer health, rising continued unemployment claims suggest people are having a harder time finding jobs. Additionally, rising credit card debt indicates the American consumer’s wallet is stretched.
Investment Methodology Across Asset Classes
Venture Capital
Success is built upon being able to connect the dots. An advantage can arise if an investor is either able to connect dots better or has more dots available. Relationships are also important, where an investor needs connections and relationships to source and put deals together.
When looking at important investment criteria, tailwinds and unique ideas are the most important. With any given addressable market issue, being able to tackle it in a differentiated way is crucial.
For venture capital, it is important to stay diversified and utilize the power law to maintain exposure to big winners that compensate for underperformers.
Equipment and Real Estate Financing
It is important to understand why the borrower needs capital. With financing, it is crucial to understand the downside case. As such, conducting diligence on collateral, the cash flow story, and exit strategies are key.
Fixed Income
For fixed income, investors live in Excel and take a bottom-up approach, looking at the fundamentals of a company and its EBITDA power. Additionally, while good management teams are always important, investors can work to protect against poor management through board control.
Furthermore, considerations and sourcing strategies differ across private and liquid credit assets.
Real Estate (Multifamily)
Real estate is very much built around relationships, understanding market cycles, and remaining disciplined. Additionally, a deep understanding of the market and region can lead to greater advantages than modeling.
Public Markets
Investors implement a conservative investing style where they try to buy companies worth 100 at 80. Furthermore, it is important to understand why things are trading how they are and to see if there is any upside potential.
VIG Merchandise
We are also excited to announce that we are issuing VIG swag! We will be custom-embroidering Patagonia quarter-zips with the VIG logo for alumni and active members. The total cost for the quarter-zip will be $100, of which all additional proceeds will go toward funding future VIG events and efforts. Below is a mockup of the design.
If interested, please fill out this Google Form by November 30th.
Active Member Update & Alumni Network Updates
A copy of our active member roster (current as of November 2023) is attached below.
VIG members placed exceptionally well this past recruitment cycle for Summer 2024 internships, continuing to highlight the merits of our curriculum and discussions.
Matthew Day — D.E. Shaw, Hedge fund, New York
Harris Daud — Ares, Direct Lending, Los Angeles
Daniel Li — J.P. Morgan, Investment Banking, New York
We are also actively working on collecting alumni information. As such, our alumni tracker with editing permissions is linked here. You may also contribute alumni information by emailing us details at uscvalue@gmail.com.
Thank you for reading VIG’s inaugural Alumni Newsletter. We look forward to strengthening our ties with alumni and sharing VIG’s upcoming events and accomplishments. If you have any questions or opportunities to share, feel free to email us at uscvalue@gmail.com.